Earnings Release • Feb 16, 2023
Earnings Release
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Kahoot! Group
"Through 2022 the Kahoot! Group has progressed its leadership in global digital learning, entering the new year with a stronger company and a stronger product than ever, with half our team devoted to building solutions for the future. We delivered on our cash flow guidance for the full year and generated the highest number of net new paid subscriptions quarterly in 2022, with particular momentum in the Kahoot! At Work segment in the fourth quarter. The core Kahoot! platform (excluding acquisitions) exceeded \$75 million in invoiced revenues, over 20% YoY growth, for the full year and more than 700K paid subscriptions.
At the same time, end-of-year growth in billing volume ended below our expectations. The current macro environment is driving more cautious decision-making and longer sales cycles, which resulted in lower than expected revenue growth from our year-end activities. We are not satisfied with our sales performance at the end of the year, and in response we will take additional steps to adapt to current market circumstances, and ensure further improvements in our commercial model. We remain committed to continuous innovation of our market-leading solutions and delivering cash-generative, sustainable and profitable growth."
- Eilert Hanoa, CEO of Kahoot!
"Despite the lower than expected growth in billings in the fourth quarter and more demanding market conditions, we maintained consistent cost levels in line with previous quarters, resulting in all-time high adjusted operating cash flow of \$42.7 million and adjusted EBITDA of \$30.3 million for the full year. This is achieved due to our scalable business model and effective unit economics, demonstrated both before, under and after the pandemic. Our current operating capacity can deliver even stronger results, enabling continued invoiced revenue growth on par with the 2022 proforma growth level, with modest operational cost increase yielding further improvements in operating cash flow and adjusted EBITDA."
In order to enhance the understanding of the Kahoot! Group's performance, the Group presents certain measures and ratios considered as alternative performance measures (APMs) as defined by the European Securities and Markets Authority, and these should not be viewed as substitutes for any IFRS financial measures. The APMs includes Invoiced Revenue, Monthly Recurring Revenue (MRR), Annual Recurring Revenue (ARR), Gross margin, EBITDA, adjusted EBITDA, adjusted cash flow from operations, and equity ratio. These APMs are presented as the Group considers them to be important supplemental measures to understand the overall picture of revenue and profit generation in the Group's operating activities.
| USD in millions | Q4 2022 | Q4 2021 | YoY | FY 2022 | FY 2021 6 | YoY |
|---|---|---|---|---|---|---|
| Total revenue and other operating income | 39.0 | 33.0 | 18% | 146.0 | 91.3 | 60% |
| Cost of sales 1 | 1.9 | 2.6 | 7.0 | 7.0 | ||
| Employee benefit expenses 2 | 16.5 | 13.9 | 62.5 | 35.2 | ||
| Other operating expenses 3 | 10.9 | 11.1 | 46.2 | 29.7 | ||
| Total operating expenses | 29.3 | 27.6 | 6% | 115.7 | 72.0 | 61% |
| Adjusted EBITDA | 9.6 | 5.5 | 76% | 30.3 | 19.3 | 57% |
| Share based compensation expenses | 6.3 | 8.8 | 23.2 | 15.5 | ||
| Payroll tax share based compensation | 0.4 | (3.1) | (2.7) | (7.6) | ||
| Acquisition transaction and listing cost | $\blacksquare$ | 0.3 | 0.2 | 6.6 | ||
| EBITDA | 3.0 | (0.6) | 9.6 | 4.7 | ||
| Invoiced revenue | 43.9 | 39.7 | 10% | 169.0 | 107.2 | 58% |
| ARR end of period | 156.0 | 133.0 | 17% | 156.0 | 133.0 | 17% |
| Gross margin | 95 % | 92% | 95 % | 92% | ||
| Adjusted EBITDA margin | 25 % | 17% | 21 % | 21% | ||
| Cash flow from operating activities 4 | 17.3 | 13.4 | 28% | 42.7 | 31.3 | 37% |
| Capital expenditures 5 | 0.3 | 0.2 | 1.5 | 0.8 | ||
| Cash and cash equivalents end of period | 104.8 | 107.8 | 104.8 | 107.8 |
1 Cost of sales are third-party sales and distribution cost.
2 Employee benefit expenses include regular operational payroll and employee related benefit expenses. Calculated share-based payment expenses and related payroll taxes for the Group's share option program are not included.
3 Other operating expenses not including acquisition-related expenses, listing cost preparations, depreciation, and amortization.
4 Full year 2022 adjusted for \$0.8 million cash outflow for expenses to social security cost on share-based payments.
5 Capital expenditures not including acquisitions.
6 Includes Clever from 1 September 2021.
4
• Equity ratio is defined as total equity divided by total assets.
Net financial income amounted to \$4.7 million for the fourth quarter 2022, compared to \$1.4 million for the corresponding quarter 2021. The net financial income for the fourth quarter 2022 is mainly due to exchange rate effects on settlement of intercompany balances within the Group companies. For the full year 2022 net financial expenses amounted to \$0.8 million compared to net financial income of \$1.8 million for 2021.
The \$6.8 million positive effect from income tax for the fourth quarter 2022 is mainly due to recognition of deferred tax asset. The positive effect from income tax for the full year 2022 was \$8.1 million.
With considerable macroeconomic uncertainty towards the end of the year, we saw organizations across our market segments exercising more spending caution, resulting in longer sales cycles. Despite this challenging external environment, Kahoot! capped off a good year in the fourth quarter, delivering solid financial and operational performance, continuing to position for further profitable growth.
Adding sixty thousand net new paid subscriptions, the final quarter saw the highest number of net new paid subscriptions in 2022, with minimal customer acquisition cost, due to our viral distribution model. As we continue to develop the world's leading digital learning platform for all user categories, we're particularly pleased to see the quarter's strong contribution from Kahoot! At Work, in line with the long-term growth trend in engagement, conversion and sales to professional users and larger corporations. Still, with some 97% of the platform's users benefiting from our free services the potential for further monetization remains significant.
Our commitment to continued innovation and product-led growth proves to yield strong momentum, demonstrated in the fourth quarter with the launch of a series of new game experiences and customizable player characters, further increasing engagement for millions of participants every day since the October launch. This monumental engagement provides a basis for further interaction on the platform, supporting additional routes to monetization going forward.
Leaving the pandemic behind, our platform showed comparative resilience through the second half of the year, with our user base finding ever new ways to engage their audience both in-presence, virtual or hybrid. Despite solid performance across the group in the fourth quarter, our end-of-year activities still generated lower than expected growth in billing volume for the quarter and consequently the full year. In response to this, and to further deploy the group´s resources to advance growth, we are taking additional steps to adapt to the current market circumstances entering 2023:
Amidst macro-economic uncertainty in the short term, we remain optimistic about our future opportunities. With our strategic market position and global brand the group is well positioned to take advantage of secular trends of digital transformation, including upskilling and reskilling of the workforce. Our scalable and lean business model combined with our enriched product suite and favorable price-points, gives us resilience and flexibility to seize opportunities in the next growth cycle for digital learning and audience engagement. The group's diversified offering gives potential to grow across K12 and higher-ed, across the corporate and enterprise sector, for personal usage at home, as well as in the emerging area of content and experience.
Based on our current operating model and capacity, supported by additional organizational optimizations, Kahoot! is in position to generate even stronger results going forward. Due to effective unit economics and a highly scalable platform we expect to see continued profitable growth in the quarters to come, as we pursue our mission of making learning awesome for everyone.
The Commercial category includes Kahoot!, a leading audience engagement solution used in 97% of Fortune 500 companies, Motimate, a modern complete training solution, and Actimo, an employee communication and engagement app with particular focus on nondesk workers. Kahoot!'s Commercial offerings help corporate customers engage employees and build company culture by delivering easy to use, unique training and communication experiences, across entire organizations.
In Q4, net 30,000 new paid subscriptions were added, reaching approx. 580,000 in total paid subscriptions, up 18% YoY. For the full year, Commercial invoiced revenue grew approx 20% YoY on constant currency. Continued traction with increased new key account customer accounts expansions and increased volume of agreements for Kahoot! 360, Actimo & Motimate. Sales pipeline continues to remain solid, despite elongated sales cycles as a result of more cautious decision making and spending among customers. Several new feature launches during the quarter including professional courses, Kahoot! as part of Zoom curated Essential Apps to energize virtual meetings and new Google Meet integration with live sharing feature.
The Education category includes Kahoot, the leading learning and engagement tool for teachers and students, and Clever, the market leading single sign-on portal for teachers and students in K-12 US. Over 8 million educators across the world use Kahoot!'s learning tools to
make learning awesome for hundreds of millions of students across thousands of schools, campuses, universities and districts.
In Q4, over 10,000 net new paid subscriptions were added, reaching approx. 435,000 in total subscriptions, up 19% YoY. Continued growth of teachers and educational institutions are using Kahoot! to ensure engaging learning and taking advantage of the first rollout of the new student-led game experiences on Kahoot! with new commercial plans.
Clever continued growing its network, with now 75% of all U.S. K-12 schools and over 24m monthly active students on the platform. Total paid app partners reached 590+, up approx. 34% YoY. For the full year, Clever grew 29% in billings and reached a net Revenue Retention over 110% for the full year. Clever's IDM product was recognized with the District Administration's Top EdTech Product of the Year award in the IT category.
The Consumer & Experience category includes Kahoot!'s learning platform, award winning learning apps like Poio, DragonBox, Drops, and premium learning content from world leading publishers and brands, enabling hundreds of millions of participants, from children, students and families to connect and learn in an engaging way, either through self-study or live sessions for learning, family fun and social settings.
Over 20,000 net new paid subscriptions were added, reaching approx. 295,000 this quarter, up 18% YoY. Development was driven by renewed and aligned commercial models for Kahoot! Kids and young students. Several releases including new Kahoot! App for Apple MacOs, and adding Swedish as the 17th language to our offering. Announced new publisher and partnerships deals including Kahoot & Amazon Future Engineer launch, and new Marvel content in K!+ AccessPass enabling engaging learning content with your favorite superheroes.
Going forward the Kahoot! Group will provide guidance as outlined below.
Full year 2023 continued double digit year-on-year growth in billings delivering recognized revenues exceeding \$170m with modest annual growth in operational cost base, and adjusted EBITDA exceeding 40% year-on-year growth with solid free cash flow.
First quarter 2023 continued year-on-year growth in billings delivering recognized revenues of \$39-40m with modest quarterly increase in operational cost base resulting in year-on-year improvement in adjusted EBITDA and free cash flow.
Reiterating the long-term growth potential and scalability ambition, targeting ~40% cash conversion in 2025 (as percentage of billings). Further information will be provided on the Investor Day in the second quarter of 2023.
As previously communicated the Company is exploring the opportunity for a secondary listing. After concluding its initial assessment, the Company has decided that it will continue to explore preparations for a potential secondary listing in the U.S. The Company will update the market in line with applicable regulatory requirements.
The information contained in this report has not been audited and may be subject to change.
Please see Kahoot! News on kahoot.com/news to stay up to date on company news and updates.
Eilert Hanoa, CEO Phone: +47 928 32 905 Email: [email protected]
Ken Østreng, CFO Phone: +47 911 51 686 Email: [email protected]
Jonas Forslund, Director Investor Relations Phone: +358 40 595 0968 Email: [email protected]
Kahoot! is on a mission to make learning awesome! We want to empower everyone, including children, students, and employees to unlock their full learning potential. Our learning platform makes it easy for any individual or corporation to create, share, and host learning sessions that drive compelling engagement. Launched in 2013, Kahoot!'s vision is to build the leading learning platform in the world. Since launch, Kahoot! has hosted hundreds of millions of learning sessions with over 9 billion participants (non-unique) in more than 200 countries and regions. The Kahoot! Group includes Clever, the leading US K-12 EdTech learning platform, together with the learning apps DragonBox, Poio, Drops, Actimo, Motimate, and Whiteboard.fi. The Kahoot! Group is headquartered in Oslo, Norway with offices in the US, the UK, France, Finland, Estonia, Denmark, Spain and Poland. Kahoot! is listed on the Oslo Stock Exchange under the ticker KAHOT. Let's play!
| (Numbers in thousands) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Paid subscriptions 1 | 202 | -270 | 360 | -675 | 760 | 933 1,015 1,110 1,170 1,210 1,250 1,310 | ||||||
| Commercial | 83. | 100 | 105 | 245 | -255 | 403 435 | 490 515 | 530 | 550 | 580 | ||
| Education | 91. | - 125 | 180 | 230 | -275 | 295 335 | 365 395 | 410 | 425. | 435 | ||
| Consumer & Experience | -28 | $-45$ | -75. | -200 | -230 | -234 | -245 | -255 | -260 | 270 | -275 | -295 |
1 Including acquired units from time of acquisition. Actimo were included with 125K in Q4 2020, Drops with 100K in Q4 2020, Whiteboard with 7K in Q1 2021 and Motimate with 130K in Q2 2021.
Overview of active accounts, hosted sessions, and participants (non-unique) on the Kahoot! platform 2 last twelve months per end of quarter.
| (LTM numbers in millions) | Q1'20 | Q2'20 | Q3'20 | Q4'20 | Q1'21 | Q2'21 | Q3'21 | Q4'21 | Q1'22 | Q2'22 | O3'22 | O4'22 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Active accounts | 0.3 | 0.4 | 0.5 | 0.5 | 0.6 | 0.5 | 0.6 | 0.7 | 0.8 | 0.8 | 0.9 | 0.9 |
| Hosted sessions | 2.7 | 2.7 | 3.1 | 3.9 | 4.6 | 4.6 | 4.9 | 5.8 | 6.4 | 6.4 | 6.4 | 5.9 |
| Participants | 18.8 | 20.5 | 23.1 | 27.8 | 31.5 | 32.3 | 35.1 | 43.4 | 47.8 | 47.7 | 46.8 | 44.1 |
| YoY change in millions | ||||||||||||
| Active accounts | 0.0 | 0.0 | 0.1 | 0.1 | 0.2 | 0.1 | 0.1 | 0.2 | 0.3 | 0.3 | 0.3 | 0.2 |
| Hosted sessions | $-0.1$ | $-0.1$ | 0.5 | 1.2 | 1.9 | 1.9 | 1.8 | 1.9 | 1.8 | 1.8 | 1.4 | 0.0 |
| Participants | $-0.9$ | 1.1 | 4.2 | 9.3 | 12.7 | 11.8 | 12.0 | 15.6 | 16.3 | 15.5 | 11.7 | 0.6 |
| (LTM numbers in millions) | Q1'20 | Q2'20 | O3'20 | Q4'20 | Q1'21 Q2'21 | Q3'21 | Q4'21 | Q1'22 | Q2'22 | Q3'22 | O4'22 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Active accounts | 6.0 | 6.4 | 6.9 | 7.6 | 8.3 | 8.7 | 9.1 | 9.3 | 9.3 | 8.8 | 8.7 | 8.7 |
| Hosted sessions | 79.0 | 68.7 | 76.9 | 94.3 | 112.3 | 129.6 | 134.0 | 131.4 | 125.9 | 119.7 | 116.8 | 113.1 |
| Participants | 877.2 | 811.9 | 879.9 1,005.5 1,134.9 1,341.2 1,381.5 1,406.6 1,372.3 1,321.3 1,300.4 1,253.3 | |||||||||
| YoY change in millions | ||||||||||||
| Active accounts | 1.1 | 1.3 | 1.5 | 1.9 | 2.3 | 2.3 | 2.2 | 1.7 | 0.9 | 0.1 | $-0.4$ | $-0.6$ |
| Hosted sessions | 7.9 | $-5.8$ | 0.7 | 16.8 | 33.3 | 60.9 | 57.2 | 37.1 | 13.6 | $-10.0$ | $-17.3$ | $-18.4$ |
| Participants | 129.3 | 36.6 | 93.8 | 180.6 | 257.7 | 529.3 | 501.6 | 401.1 | 237.4 | $-19.8$ | $-81.1$ | -153.3 |
| (LTM numbers in millions) | Q1'20 | Q2'20 | Q3'20 | Q4'20 | Q1'21 Q2'21 | Q3'21 | Q4'21 | Q1'22 | Q2'22 | O3'22 | O4'22 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Active accounts | 10.4 | 13.5 | 14.2 | 16.7 | 19.3 | 19.7 | 20.6 | 20.9 | 19.8 | 18.4 | 17.2 | 16.2 |
| Hosted sessions | 135.9 | 138.8 | 143.8 | 152.2 | 162.0 | 169.3 | 175.3 | 173.2 | 164.7 | 162.0 | 158.7 | 149.5 |
| Participants | 408.8 | 412.7 | 436.1 | 458.9 | 452.9 | 481.1 | 510.5 | 526.5 | 496.3 | 474.8 | 452.7 | 380.7 |
| YoY change in millions | ||||||||||||
| Active accounts | $2.2^{\circ}$ | 4.8 | 5.1 | 7.0 | 8.9 | 6.3 | 6.5 | 4.2 | 0.6 | $-1.4$ | $-3.4$ | $-4.7$ |
| Hosted sessions | 27.3 | 19.3 | 19.4 | 21.5 | 26.1 | 30.4 | 31.5 | 21.0 | 2.7 | $-7.3$ | $-16.6$ | $-23.7$ |
| Participants | 119.0 | 98.5 | 115.1 | 114.3 | 44.1 | 68.4 | 74.4 | 67.5 | 43.4 | $-6.4$ | $-57.7$ | $-145.7$ |
2 All user data from the Kahoot! platform not including other services in the Kahoot! Group.
3 Category is based on account registration data.
| (LTM numbers in millions) | Q1'20 | Q2'20 | Q3'20 | Q4'20 | Q1'21 | Q2'21 | Q3'21 | Q4'21 | Q1'22 | Q2'22 | Q3'22 | Q4'22 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Active accounts | 16.8 | 20.3 | 21.5 | 24.8 | 28.2 | 29.0 | 30.3 | 30.9 | 29.9 | 28.0 | 26.7 | 25.8 |
| USA and Canada | 8.6 | 9.5 | 9.6 | 11.2 | 12.2 | 12.8 | 13.1 | 13.4 | 12.7 | 11.6 | 11.2 | 10.8 |
| Europe | 5.1 | 6.5 | 6.7 | 7.4 | 8.9 | 8.8 | 9.3 | 9.8 | 9.6 | 9.4 | 9.3 | 9.3 |
| Asia Pacific | 1.6 | 2.1 | 2.4 | 2.6 | 2.8 | 2.7 | 3.2 | 3.3 | 3.3 | 3.3 | 2.9 | 2.7 |
| Latin America | 0.9 | 1.4 | 1.8 | 2.4 | 2.9 | 3.2 | 3.2 | 3.1 | 2.9 | 2.5 | 2.2 | 2.0 |
| Africa, Middle East, India | 0.5 | 0.8 | 0.9 | 1.2 | 1.4 | 1.4 | 1.4 | 1.4 | 1.3 | 1.2 | 1.1 | 1.0 |
| Hosted sessions | 217.6 | 210.2 | 223.8 | 250.5 | 278.9 | 303.5 | 314.2 | 310.5 | 297.1 | 288.1 | 281.8 | 268.4 |
| USA and Canada | 110.3 | 97.8 | 101.8 | 115.6 | 129.3 | 146.3 | 149.1 | 142.0 | 131.9 | 123.6 | 120.7 | 110.7 |
| Europe | 64.5 | 64.3 | 66.2 | 71.9 | 80.3 | 84.5 | 88.4 | 91.7 | 90.8 | 93.5 | 96.8 | 97.1 |
| Asia Pacific | 22.0 | 23.3 | 24.6 | 25.5 | 26.4 | 26.8 | 30.7 | 32.6 | 33.2 | 33.3 | 30.3 | 29.5 |
| Latin America | 12.7 | 14.7 | 18.6 | 22.6 | 26.6 | 29.7 | 29.7 | 28.8 | 26.4 | 23.6 | 21.6 | 20.0 |
| Africa, Middle East, India | 8.0 | 10.0 | 12.5 | 14.8 | 16.4 | 16.2 | 16.3 | 15.4 | 14.8 | 14.1 | 12.4 | 11.1 |
| Participants (non-unique) | 1,305 | 1,245 | 1,339 | 1,492 | 1,619 | 1,855 | 1,927 | 1,976 | 1,916 | 1,844 | 1,800 | 1,678 |
| USA and Canada | 742 | 655 | 683 | 760 | 818 | 973 | 1,005 | 1,012 | 969 | 909 | 883 | 795 |
| Europe | 344 | 347 | 360 | 392 | 423 | 472 | 493 | 525 | 519 | 526 | 537 | 524 |
| Asia Pacific | 126 | 128 | 143 | 152 | 160 | 171 | 191 | 207 | 211 | 213 | 201 | 197 |
| Latin America | 59 | 73 | 99 | 124 | 148 | 168 | 168 | 164 | 152 | 134 | 123 | 113 |
| Africa, Middle Fast, India | 34 | 42 | 54 | 65 | 69 | 70 | 70 | 68 | 66 | 62 | 55 | 49 |
| USD in thousands | Note | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 |
|---|---|---|---|---|---|
| Revenue from contracts with customers | $\overline{2}$ | 38,961 | 33,022 | 145,610 | 91,016 |
| Other operating income | $\overline{2}$ | ÷ | $\blacksquare$ | 350 | 249 |
| Total revenue and other operating income | 38,961 | 33,022 | 145,960 | 91,265 | |
| Cost of sales | 1.911 | 2,629 | 7.012 | 7.029 | |
| Employee benefit expenses | 23,117 | 19,648 | 82,967 | 43,235 | |
| Other operating expenses | 10,947 | 11,366 | 46,418 | 36,351 | |
| Operating profit/(loss) before deprec. and amortiz. (EBITDA) | 2,986 | (621) | 9,563 | 4,650 | |
| Amortization of intangible assets | 2,335 | 3,246 | 12,570 | 8,848 | |
| Depreciation | 637 | 465 | 2,081 | 1,357 | |
| Operating profit/(loss) (EBIT) | 14 | (4, 332) | (5,088) | (5,555) | |
| Financial income | 469 | (66) | 820 | 432 | |
| Financial expenses | 59 | (63) | (327) | (205) | |
| Net change in fair value of financial instruments | (318) | 884 | 3,415 | 2,594 | |
| Net foreign exchange gains (losses) | 4,478 | 638 | (4,681) | (984) | |
| Net financial income (expenses) | 4,688 | 1,393 | (773) | 1,837 | |
| Profit/(loss) before income tax | 4,702 | (2,939) | (5,861) | (3,718) | |
| Income tax | (6,767) | (771) | (8, 149) | (1,838) | |
| Profit/(loss) for the period | 11,469 | (2, 168) | 2,288 | (1,880) | |
| Profit/(loss) for the period attributable to: | |||||
| Equity holders of Kahoot! ASA | 11,469 | (2, 168) | 2,288 | (1,880) | |
| Earnings per share in USD | |||||
| Basic earnings per share | 0.02 | (0.00) | 0.00 | (0.00) | |
| Diluted earnings per share | 0.02 | (0.00) | 0.00 | (0.00) |
| Q4 2022 | Q4 2021 | FY 2022 | FY 2021 |
|---|---|---|---|
| 11,469 | (2.168) | 2.288 | (1,880) |
| 7.329 | (1,597) | (4,614) | (8,751) |
| 18.798 | (3,765) | (2,326) | (10, 631) |
| 18,798 | (3.765) | (2,326) | (10,631) |
| USD in thousands | Note 31.12.2022 31.12.2021 | ||
|---|---|---|---|
| ASSETS | |||
| Goodwill | 487,161 | 494,430 | |
| Intangible assets | 158,757 | 173,284 | |
| Property, plant and equipment | 1,372 | 633 | |
| Right-of-use assets | 6,072 | 2,928 | |
| Deferred tax asset | 5,051 | ||
| Total non-current assets | 658,413 | 671,275 | |
| Trade receivables | 19,964 | 11,764 | |
| Other current assets | 4,990 | 5,304 | |
| Cash and cash equivalents | 104,799 | 107,765 | |
| Total current assets | 129,753 | 124,833 | |
| TOTAL ASSETS | 788,166 | 796,108 | |
| EQUITY AND LIABILITIES | |||
| Share capital | 3 | 5,773 | 5,707 |
| Share premium | 662,780 | 651,581 | |
| Share-based payments reserves | 34,739 | 16,963 | |
| Foreign currency translation reserves | (15, 342) | (10, 728) | |
| Accumulated deficit | (79, 720) | (82,008) | |
| Total equity | 608,230 | 581,515 | |
| Lease liabilities | 4,337 | 2,044 | |
| Deferred tax liability | 42,673 | 46,288 | |
| Contract liabilities (deferred revenue) | 3,353 | ||
| Other non-current liabilities | 9,709 | 40,565 | |
| Total non-current liabilities | 60,072 | 88,897 | |
| Lease liabilities | 2,083 | 1,007 | |
| Current tax liabilities | 11 | 4 | |
| Trade payables | 4,543 | 5,359 | |
| Contract liabilities (deferred revenue) | 76,561 | 60,772 | |
| Other current liabilities | 36,666 | 58,554 | |
| Total current liabilities | 119,864 | 125,696 | |
| Total liabilities | 179,936 | 214,593 | |
| TOTAL EQUITY AND LIABILITIES | 788,166 | 796,108 |
| Share- | Foreign | |||||
|---|---|---|---|---|---|---|
| based | currency | Accu- | ||||
| Share | Share | payment | translation | mulated | Total | |
| USD in thousands | capital | premium | reserves | reserves | deficit | equity |
| Balance at 1 January 2021 | 5,228 | 357,383 | 5,542 | (1, 977) | (80, 128) | 286,048 |
| Profit/(loss) for the period | $\blacksquare$ | $\overline{\phantom{a}}$ | ۰ | (1,880) | (1,880) | |
| Currency translation differences | $\overline{\phantom{a}}$ | $\overline{\phantom{a}}$ | (8,751) | (8,751) | ||
| Total comprehensive income/(loss) for the period | (8,751) | (1,880) | (10, 631) | |||
| Issuance of shares | 479 | 302,700 | 303,179 | |||
| Transaction costs on equity issues | (8,502) | ۰ | (8,502) | |||
| Share option program | ٠ | ٠ | 11,421 | ٠ | 11,421 | |
| Balance at 31 December 2021 | 5,707 | 651,581 | 16,963 | (10, 728) | (82,008) | 581,515 |
| Profit/(loss) for the period | $\overline{\phantom{a}}$ | ۰ | ۰ | 2,288 | 2,288 | |
| Currency translation differences | $\blacksquare$ | ۰ | (4,614) | $\sim$ | (4,614) | |
| Total comprehensive income/(loss) for the period | $\overline{\phantom{a}}$ | ۰ | (4,614) | 2,288 | (2, 326) | |
| Issuance of shares | 66 | 11,238 | $\sim$ | $\sim$ | 11,304 | |
| Transaction costs on equity issues | $\overline{\phantom{a}}$ | (39) | $\blacksquare$ | (39) | ||
| Share option program | $\overline{\phantom{a}}$ | ۰ | 17,776 | ۰ | 17,776 | |
| Balance at 31 December 2022 | 5,773 | 662,780 | 34,739 | (15, 342) | (79, 720) | 608,230 |
| USD in thousands | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 |
|---|---|---|---|---|
| Cash flows from operating activities | ||||
| Profit/(loss) before income tax | 4,702 | (2,939) | (5,861) | (3,718) |
| Adjustments for | ||||
| Depreciation and amortization | 2,972 | 3.711 | 14,651 | 10,205 |
| Share-based payments expense | 5,309 | 4,642 | 17,776 | 11,421 |
| Change in trade receivables | 2,874 | 1,440 | (8,525) | (781) |
| Change in contract liabilities | 5,047 | 6,785 | 19,934 | 15,757 |
| Change in trade payables | (519) | 1,469 | (1,052) | 2,752 |
| Change in other current assets and other liabilities | (3,650) | (15,017) | 4,457 | (14, 965) |
| Taxes paid | ۰ | $\blacksquare$ | (13) | (6) |
| Interest received | 469 | (66) | 820 | 432 |
| Financial expenses | 59 | (63) | (327) | (205) |
| Net cash flow from operating activities | 17,263 | (38) | 41,860 | 20,892 |
| Cash flows from investing activities | ||||
| Payment for acquisition of subsidiary, net of cash acquired 1 | (2,215) | (99, 570) | (41, 231) | (364, 145) |
| Payment for intangible assets | (182) | (1) | (892) | (562) |
| Payment for property, plant and equipment | (161) | (60) | (946) | (216) |
| Net cash from investing activities | (2,558) | (99, 631) | (43,069) | (364, 923) |
| Cash flows from financing activities | ||||
| Proceeds from issuance of ordinary shares | 861 | 221 | 860 | 205,077 |
| Transaction costs on issuance of ordinary shares | 7 | (336) | (40) | (8,502) |
| Repayments of lease liabilities | (390) | (290) | (1,295) | (991) |
| Paid interest on lease liabilities | (67) | 1 | (161) | (89) |
| Net cash from financing activities | 411 | (404) | (636) | 195,495 |
| Net increase/(decrease) in cash and cash equivalents | 15,116 | (100, 073) | (1, 845) | (148, 536) |
| Cash and cash equivalents beginning of the period | 86,832 | 206,403 | 107,765 | 256,120 |
| Effects of exchange rate changes on cash and cash equiv. | 2,852 | 1,435 | (1, 121) | 181 |
| Cash and cash equivalents as of end of period | 104,799 | 107,765 | 104,799 | 107,765 |
1Cash outflow for acquisitions of subsidiaries only relates to contingent and deferred consideration liabilities paid in 2022 for acquisitions in 2020 and 2021. For further information please see note 4 in the 2021 Annual Report.
Kahoot! ASA (the Company or Kahoot!), the parent company of the Kahoot! Group (the Group) is a public limited liability company incorporated and domiciled in Norway, with its head office in Fridtjof Nansens plass 7, 0160 Oslo. The Company is listed on Oslo Stock Exchange has the ticker "KAHOT".
The condensed consolidated interim financial statements consist of Kahoot! ASA and its subsidiaries. As a result of rounding differences, numbers or percentages may not add up to the total.
These interim condensed consolidated financial statements for the twelve months ending 31 December 2022, have been prepared in accordance with IAS 34 Interim Financial Reporting, and authorized for issue by the board of directors on 15 February 2023. The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual financial statements for 2021.
The accounting policies applied in the preparation of the interim consolidated financial statements are consistent with those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2021.
The Kahoot! Group has one segment: software to make learning awesome. The market for Kahoot!'s software is global. The chief decision maker will therefore follow up revenue and profitability on a global basis. This is consistent with the internal reporting submitted to the chief operating decision maker responsible for allocating resources and assessing performance as well as making strategic decisions.
| USD in thousands | Q4 2022 | Q4 2021 | FY 2022 | FY 2021 |
|---|---|---|---|---|
| Subscription revenue - recognized over time | 38.653 | 32,510 | 144.622 | 90,081 |
| Other revenue - recognized at point in time | 308 | 512 | 988 | 935 |
| Total revenue from contracts with customers | 38.961 | 33.022 | 145.610 | 91,016 |
| Other operating income | $\overline{\phantom{a}}$ | 350 | 249 | |
| Total revenue and other operating income | 38.961 | 33,022 | 145,960 | 91,265 |
Kahoot! ASA only has one class of shares, and all shares have the same voting rights. The shareholders are entitled to receive dividends as and when declared and are entitled to one vote per share at General Meetings of the Company.
| Number of Share capital | Share capital | ||
|---|---|---|---|
| shares | (NOK) | (USD) | |
| Balance at 1 January 2022 | 486,581,479 | 48.658.148 | 5.707.355 |
| Issued during the year | 6.254.570 | 625,457 | 65,358 |
| Balance at 31 December 2022 | 492.836.049 | 49.283.605 | 5.772.713 |
The share capital is fully paid and has a par value of NOK 0.10.
At the Annual General Meeting of Kahoot! ASA on 27 May 2022, the Board of Directors were authorized to increase the share capital by up to NOK 9 million through the issuance of up to 90 million new shares in connection with (i) mergers, acquisitions, equity raises and (ii) exercise of share options. The Board of Directors were authorized to acquire treasury shares with a total nominal value of up to NOK 1.5 million.
For information relating to the Group's Employee Option and RSU Plan, please see the Guidelines for salary and other remuneration approved by the Annual General meeting on 27 May 2022 and note 17 in the 2021 Annual Report.
The table below shows the development in the Company's share capital in 2022.
| Date of | Change in share capital |
New share capital |
Nominal value |
Number of total Subscription price | ||
|---|---|---|---|---|---|---|
| registration | Type of change | (NOK) | (NOK) | (NOK) | issued shares | per share (NOK) |
| 01 Mar 22 | Share capital increase | 256,967.10 | 48,915,115.00 | 0.10 | 489,151,150 | 1 |
| 10 Jun 22 | Share capital increase | 6.249.10 | 48,921,364.10 | 0.10 | 489,213,641 | 2) |
| 14 Sep 22 | Share capital increase | 3,918.30 | 48,925,282.40 | 0.10 | 489,252,824 | 3) |
| 17 Nov 22 | Share capital increase | 358,322.50 | 49,283,604.90 | 0.10 | 492,836,049 | 4) |
1) Share issue with NOK subscription price: 64.77/48.08/47.06/38.24/36.42/34.55/32.34/31.63
2) Share issue with NOK subscription price: 64.77/48.08/47.06/31.63/0.10
3) Share issue with NOK subscription price: 64.77/48.08/47.06/31.63
4) Share issue with NOK subscription price: 16.67/16.00/10.00/8.33/6.67/3.33/1.67
| Approx. 38,000 shareholders per 31 December 2022 | Shares (m) | % |
|---|---|---|
| JPMorgan Chase Bank | 73.7 | 15.0% |
| Glitrafjord AS | 41.3 | 8.4% |
| Datum AS | 28.0 | 5.7% |
| Folketrygdfondet | 20.4 | 4.1% |
| Creandum III LP | 20.0 | 4.1% |
| Citigroup Global Markets Inc. | 13.5 | 2.7% |
| State Street Bank and Trust Comp | 12.3 | 2.5% |
| The Northern Trust Comp | 8.9 | 1.8% |
| Newbrott AS | 7.6 | 1.5% |
| State Street Bank and Trust Comp | 7.3 | 1.5% |
| Versvik Invest AS | 7.3 | 1.5% |
| Nordnet Bank AB | 6.1 | 1.2% |
| J.P. Morgan SE | 5.8 | 1.2% |
| Datum Invest AS | 5.5 | 1.1% |
| JPMorgan Chase Bank, N.A. | 5.5 | 1.1% |
| Citibank, N.A. | 5.1 | 1.0% |
| Gamification AS | 5.1 | 1.0% |
| J.P. Morgan SE | 5.0 | 1.0% |
| J.P. Morgan SE | 4.9 | 1.0% |
| UBS Switzerland AG | 4.5 | 0.9% |
| Other | 204.9 | 41.6% |
| Total outstanding shares | 492.8 | 100.0% |
| Outstanding share options / RSUs | 32.7 | |
| Total no. of shares (fully diluted) | 525.5 |
Investors with shareholding exceeding 5%: General Atlantic, Glitrafjord (CEO, Eilert Hanoa) and Datum Group.
In the 2022, the Group acquired services for \$246K from Glitrafjord AS, a company 100% owned by the CEO.
No events that have significantly affected or may significantly affect the operations of the Group have occurred after 31 December 2022.
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